Down the Tracks, a Whistle Is a-Blowin'

Rail freight signals hope.

By

Jim McTague

Updated July 27, 2009 11:59 p.m. ET

THE BULLS MIGHT NOT BE SO CRAZY AFTER ALL. The Oracle of Omaha's favorite economic indicator is hinting at an economic recovery -- and to my way of thinking, that could be a consequence of President Barack Obama's slow-motion stimulus package.

Warren Buffett routinely scrutinizes freight-rail data, and it's easy to see why: Rail loads are an excellent proxy for the volume of goods moving through the economy. Rail Time Indicators, a monthly compilation of data from the Association of America Railroads, is especially illuminating....